Applying for a Payday Loan Tips

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What are the loan restrictions in my state?

Loan Restrictions in Different States

Where you live has a lot to do with payday loans and what kinds of restrictions you'll face. While you can apply for a payday advance in all 50 states, there are different rules, legislation and restrictions that involve your repayment terms, maximum amount of money you can borrow and fees and finance charges.

For example, if you're a California resident, you can borrow money for up to 31 days, but you can only borrow up to $300 at a time. You also could be hit with 15 percent of the amount of the loan in interest in fees. This changes drastically if you are in Delaware. Borrowing in Delaware, you have up to 60 days to repay the loan and can borrow up to $500 at a time. However, there is no limit to the fees and finance charges that lender can place on you. Lenders can charge whatever they want and you can either accept it or try somewhere else.

Georgia is another state that differs dramatically. In Georgia, you can't borrow under $3,000. Chances are, you don't need that much in a small emergency. In Missouri, you'll face outrageous finance charges and fees up to 75 percent. No matter where you are, there are variations. Also, usury laws play a key in the fees and other aspects of payday lending.

States like North Carolina, Washington and others could have you paying 300 percent to 500 percent APR if you repay on time. With, all you have to do is go online, find the right lender in the right state with the best rates and get your money quickly without getting taken advantage of!

What are usury laws and how do they affect my loan?

Usury Laws and You

When you apply for a cash advance, payday loan or payday advance, it is very important that you are educated about your decision. While these loans can benefit you, you must know what you're doing and who you're getting involved with. The government has created usury laws regarding payday loan companies.

What is a usury law? Usury laws are caps on hard interest rates calculated strictly by APR that the government put in place to regulate the industry and keep companies from setting ridiculously high interest rates. However, some companies get around this law by partnering with banks in other states where usury laws do not exist or have been abolished. Why? Lenders who use this slimy scheme can charge any amount of fees they wish, while still claiming to offer low interest rates. But with, you don't have to worry about unscrupulous companies.

Companies subject to the usury laws must include all fees as part of the interest. This keeps the total fees additional to the loan capped, protecting the consumer. In fact, the government has enacted further legislation to limit lender partnerships with banks. The FDIC has worked to put in place guidelines that require banks to transition short-term loan holders over to long-term loans if those customers go beyond six payday loan renewals.

Some states limit the number of loans you can take at one time, or per year in addition to the FDIC guidelines. This prevents borrowers from staying trapped in a cycle of debt. Use a company like or you could end up paying more than you bargained for.

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